Prime Securities Launches Rs 1000 Cr Real Estate AIF, Targets Structured Credit in Under-Construction Projects
New Delhi, Jun 11 (PTI) Prime Securities, a listed Sebi-registered merchant banker, has announced the launch of its new alternative investment fund (AIF) business. The fund, called the Prime Litmus Real Estate Opportunities Fund, aims to raise a corpus of Rs 1,000 crore, including a greenshoe option. This marks a significant step in the company's strategic expansion into the AIF sector.
The Prime Litmus Real Estate Opportunities Fund is a Category II AIF with a target corpus of Rs 750 crore and a greenshoe option of Rs 250 crore. The fund will focus on structured credit investments in under-construction real estate projects across major markets such as the Mumbai Metropolitan Region, National Capital Region, Bengaluru, Chennai, Hyderabad, and Pune.
The fund will primarily invest in self-liquidating real estate projects backed by established developers, with a strong emphasis on cash-flow visibility and robust security structures. It aims to generate target annual returns of 18-20 per cent through conservative underwriting and asset management practices.
Prime Litmus Investment Management Ltd, the manager of the fund, is a joint venture between Prime Research and Advisory Ltd, a subsidiary of Prime Securities Ltd, and Litmus Global Services LLP. This collaboration brings together the expertise of both entities to create a robust investment platform.
The launch of the Prime Litmus Real Estate Opportunities Fund represents a significant milestone in Prime Securities' expansion into the AIF business. According to Prime Securities Director Akshay Gupta, India's real estate sector is undergoing a structural transformation led by consolidation, formalization, and increasing institutional participation. The launch of their AIF business is Prime Securities' commitment to creating and diversifying investment platforms to address evolving investor needs.
Litmus Global Services LLP Managing Partner Apoorv Kumar highlighted the fund's focus on providing solution-oriented capital while maintaining strong governance and transparency standards. This approach is expected to attract both institutional and retail investors looking for stable returns in the real estate sector.
The fund's strategy aligns with the current trends in the Indian real estate market, which is seeing a shift towards more formalized and regulated investment opportunities. By focusing on under-construction projects with strong cash-flow visibility, the fund aims to minimize risks and maximize returns for its investors. This strategic approach is expected to resonate well with the market's growing demand for structured and transparent investment options.
In conclusion, the launch of the Prime Litmus Real Estate Opportunities Fund is a significant development in the Indian real estate investment landscape. It not only diversifies Prime Securities' investment portfolio but also provides a new avenue for investors to participate in the growth of the real estate sector. With a well-defined investment strategy and a focus on robust security structures, the fund is poised to make a significant impact in the market.
